75th Founding Day Lecture Meeting on “India@2030” Know More

April 2014

Industrial undertaking: Deduction u/s. 80-IB: A. Y. 2001-02: Production of article: Bottling of gas into cylinders amounts to production: Assessee entitled to deduction u/s. 80-IB:

By K. B. Bhujle Advocate
Reading Time 1 mins
fiogf49gjkf0d
Puttur Petro Products P. Ltd. vs. ACIT; 361 ITR 290 (Karn):

The assessee had claimed deduction u/s. 80-IB contending that bottling of LPG gas in the cylinders amounts to production/manufacturing activity. The Assessing Officer disallowed the claim. The Tribunal upheld the disallowance.

On appeal by the assessee, the High Court reversed the decision of the Tribunal and held as under:

“i) The process of bottling of gas into gas cylinders, which requires a very specialised process and independent plant and machinery, amounts to production of “gas cylinders” containing gas for the purpose of claiming deduction u/s. 80-IB.
ii) In the circumstances, the question framed by us is answered in favour of the assessee and against the Revenue.”

Download PDF

You May Also Like

Exemption: Share of profit of partner from firm: Section 10 (2A): A. Y. 2010-11: Partners are entitled to claim exemption u/s. 10(2A) on the share of profit received from the firm even if it includes that income also which was exempted in the hands of the firm under various provisions of section 10.

Reassessment: S/s. 147, 148 and 149: A. Y. 2003-04: Extended time limit of 6 years u/s. 149(1)(b) requires data for prima facie computation of income escaping assessment at more than Rs. 1,00,000/-: